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Budget highlights 2021

17 November 2020

The Hon. Mahinda Rajapakse, the Prime Minister and Minister of Finance presented the 75th Budget of the Democratic Socialist Republic of Sri Lanka in Parliament today, focusing on strengthening the 2021–2023 medium-term programme of poverty alleviation and economic revival as envisaged within the “Vistas of Prosperity and Splendour,” the policy framework of the government of HE the President Gotabaya Rajapakse.

A consistent tax policy is envisaged for the next five years to revive the economy and support several businesses. The simplified tax policies introduced with effect from 1 January 2020 is expected to continue to better facilitate tax payers and make tax administration more efficient.

With several proposals aimed at developing domestic industries, the government aims to achieve a growth of 5.5 percent in 2021, maintain the budget gap at 9 percent of GDP, and reduce the budget deficit to 4 percent by 2025.

This memorandum has been prepared as a general guide, exclusively for the information of our clients and staff.

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